It looked like it was over for the new cryptocurrency Dogecoin (CRYPTO: DOGE). After soaring to a high of 74 cents on May 8, it went into a freefall. On July 20, it reached a low of 16 cents.

There was barely any rebound for Dogecoin, and it entered a period of sideways trading.

But on Aug. 7, the tide turned. Doge started to rally and it has been climbing higher ever since.

A classic rounded bottom pattern has formed on the chart. This pattern illustrates the slow but steady changing of leadership from the bears to the bulls. It implies the rally should continue.